Facebook and Instagram parent Meta Platforms (NASDAQ: META) is soaring. The stock is trading at all-time highs after rising 91% in the last 52 weeks. It also commands a beefy stock price at $565 per share. Is this "Magnificent 7" stock headed for a stock split in the near future?

Let's start with the basics. A stock split simply changes the number of shares that represent a company's total market value. 10 million shares worth $100 each adds up to a $1 billion market capitalization. 100 million shares priced at $10 per share works out to the same market cap. Changing the ratio neither adds nor destroys value for existing shareholders.

That said, stock splits aren't completely pointless. A lower share price can make the stock more easily accessible to investors with modest budgets, especially if they don't have a brokerage account that supports buying or selling a fraction of a full share. The price per share can also make a difference for stock options, where a standard contract represents the right to buy or sell 100 shares at a specific price.

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Source Fool.com